Apple and Amazon Avoid Mass Lawsuit in UK Over Alleged Collusion

Apple and Amazon have successfully thwarted a large-scale lawsuit in the United Kingdom that accused the two tech giants of colluding to block independent resellers of Apple products on Amazon’s marketplace. The Competition Appeal Tribunal ruled on Tuesday that the case, which sought nearly £494 million ($602 million) in damages, could not move forward due to issues with the claimant’s ability to adequately represent consumers, according to Reuters.

The legal challenge was brought by Christine Riefa, a consumer law academic, on behalf of roughly 36 million British consumers who had purchased Apple or Beats products. The lawsuit alleged that Apple and Amazon entered into an agreement in 2018 to significantly restrict third-party resellers from selling Apple and Beats items on Amazon’s UK platform, which purportedly reduced competition and left consumers with fewer options.

Related: Amazon Must Face Antitrust Case Over Alleged Monopoly Practices

Apple and Amazon both denied the claims and argued that the case was baseless. They asked the tribunal to dismiss the lawsuit, which was at the initial certification stage, a procedural step necessary for collective proceedings to continue. The tribunal agreed with their position, stating that Riefa had not shown “sufficient independence or robustness” in managing the lawsuit’s funding arrangements, which the court deemed critical for representing the proposed claimant group.

Per Reuters, the tribunal’s refusal to certify the case is notable because the threshold for certification in such class actions is typically low. The decision effectively halts the case before it can proceed to the full litigation phase.

Neither Apple nor Amazon provided immediate comments following the ruling, and Riefa’s legal team also did not respond to requests for a statement, USA Today reported.

The case highlights ongoing scrutiny of large tech companies and their business practices, particularly concerning competition and marketplace dynamics. The lawsuit alleged that limiting resellers on Amazon’s platform ultimately harmed consumers by reducing their choices and potentially inflating prices for Apple products. However, with the tribunal’s ruling, those claims will not proceed to trial unless new legal avenues are pursued.

Source: USA Today